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What is NSCarbolex™ Neutral?— Steel products essential for realizing a decarbonized society —
NSCarbolex Neutral is “GX Steel” that applies to achieved greenhouse gas (GHG) emissions reductions (including CO2(“CO2”) generated by Nippon Steel’s additional emission reduction projects in its manufacturing processes.
As the demand for decarbonization in society continues to grow, we believe that accelerating efforts towards decarbonization will enhance the competitiveness of our customers.
Nippon Steel aims to contribute to our customers’ decarbonization efforts by establishing a stable supply system for NSCarbolex Neutral at an early stage.
4 Features of NSCarbolex™ Neutral
Feature 1Apply the actual CO2 emissions reduction effects through Nippon Steel's own transformative actions and improvements in its product manufacturing processes
NSCarbolex Neutral is the steel products to which Nippon Steel applies GHG emissions reduction effects achieved through emissions reduction projects with additionality*1 in its manufacturing processes.
Feature 2Obtain verifications from an independent third-party organization and issue certificates
Nippon Steel has obtained third-party verifications and issues certificates*2, thereby ensuring impartiality.
The verifications cover the appropriateness of the Product’s carbon footprint (Allocated CFP) and Nippon Steel’s GHG emissions reductions by the projects for the relevant fiscal year.
Feature 3Contribute to reduction of customers’ Scope 3 CO2 emissions and product-level upstream emissions
Nippon Steel interprets that, based on the "Guidelines on GX Steel" by JISF, that the carbon footprint (Allocated CFP) stated in the certificate constitutes an attribute of the Product, and that, when used by the Customer in its carbon footprint calculations, the CO2 emissions reduction effects stated in the certificate is reflected in both the Customer’s organizational-level emissions (Scope 3, Category 1) and product-level upstream emissions*3.
Feature 4Applicable to all steel products manufactured by Nippon Steel
All steel products manufactured by Nippon Steel can be supplied as NSCarbolex Neutral. Furthermore, these products are available with the same quality as the ones our customers are already using.
*1 ”Emissions reduction projects with additionality” means project(s) that would not be feasible without the objective of reducing GHG emissions and that would not be viable without additional economic benefits.
*2 The NSCarbolex Neutral Certificate and the Total CO2 emissions reduction applied to the Product stated therein do not represent a carbon credit and may not be transferred or sold to any third party.
*3 These interpretations are based on the information available as of Oct 28th, 2025. They are subject to change in light of any information that may become available to Nippon Steel in the future. While Nippon Steel has taken care to ensure the accuracy of these interpretations, Nippon Steel assumes no liability whatsoever for any consequences arising from reliance on these interpretations by the Customer or any other party, including but not limited to any loss, damage, disadvantage, injury, additional cost, consequential loss, or lost opportunities, whether incurred directly or indirectly. Nippon Steel has no obligation to notify the Customer or third parties of any changes to this interpretation.
What is GX Allocation Approach?
Decarbonization is particularly challenging for the steel industry, and developing breakthrough technologies is expected to take time.
In the meantime, Nippon Steel can deliver steel products to customers by allocating achieved GHG emissions reduction effects generated by its manufacturing process improvements and transformative actions, in accordance with the GX Allocation Approach under the “Guidelines on GX Steel.”*4. (See Chart 1 and Chart 2).
”Chart 1”
”Chart 2”
*1 The GHG emissions associated with inputs that actually result in emissions during manufacturing stage
(equivalent to Scope 1 and 2), as well as the upstream portion of Scope 3 (e.g., coal)
*2 The GHG emissions associated with upstream Scope 3 inputs that do not result in emissions during the manufacturing
stage (e.g., iron ore, alloys).
*3 Allocate emissions up to the upper limit defined as the CFP before the implementation of the reduction projects（※）
（※）｛（actual GHG reduction）/ (production volume)｝ ＋ General CFP
*4 Allocate GHG emissions between GX steel and non-GX steel so that the total emissions (*1 + *2 area) remain unchanged before and after allocation.
*4 Nippon Steel allocates and certifies the Product’s carbon footprint (Allocated CFP) in accordance with the “Guidelines on GX Steel” published by JISF, as in effect on the date of the certificate. Nippon Steel has obtained a limited assurance from ClassNK regarding the appropriateness of its operation in accordance with the said Guidelines.
Validation / Verification Statement issued by ClassNK is below.